Landlord wants to up rent by 11% - what to do?

DragonQ

Hi,

My friend and I live in a property rented through a letting agent (Assured Shorthold Tenancy). We're just starting the 11th month of the 12 month term (so ~60 days left) and we got a letter from the letting agent saying that the Landlord has requested a rent increase of 11%. It then says:

The renewal Tenancy Agreement showing the proposed new rent will be forwarded to you for signature in due course.

This implies that they want to enter us into a new 12 month contract rather than a rolling one, although it doesn't state this explicitly.

We were already annoyed at having to pay the letting agent to not go and find new tenants (£60) and their high admin fees from last year (£400). We are not prepared to pay such a large increase in rent, especially as we've only been there a year and they (probably) want to enter us into a new fixed term contract.

Does anyone here have any advice on what we should do now? At the moment I'm thinking of writing a letter to the letting agent saying we're not prepared to pay the 11% increase and list various reasons why we think it's unjustified (base rate, inflation, our pay freeze, etc.). Is this a good idea?

Am I also right in thinking that if we don't agree to the rent increase, the landlord has to give us 2 months notice to kick us out? It says this in the agreement:

If notice is given under Section 21 of the Housing Act 1988 then the notice period must be for a minimum of two calendar months to end no earlier than the last day of the Term of the Tenancy.

marliepanda

You could just ignore it.

Do you have any way to directly contact your landlord? you could always write to them saying you are happy to stay on and that you are a good tenant, but you cannot afford the new rent and will be moving if the rent increases. Call his bluff. One months void would no doubt wipe out the proposed profit from the increase over a year.

Even if you have no direct contact (Ie c/o the LA), write to the LL anyway)

You don't have to sign a new agreement, but yes they can issue the s21. I get a bit confused with how it works as you are in your fixed term, but there are less than 2 months left? I would just sit tight.

DragonQ

We've never had any direct communication with the landlord. We offered to meet him before moving in but he was apparently happy to let to us without meeting us. Everything comes via the letting agent.

marliepanda

DragonQ wrote: »

We've never had any direct communication with the landlord. We offered to meet him before moving in but he was apparently happy to let to us without meeting us. Everything comes via Leaders.

I am the same, wouldnt know my LL if I passed them in the street.

I would still write to them c/o the LA. You will have the address for it in your tenancy agreement.

Assuming you are a good tenant the LL would be mad to kick you out for a rent increase etc. The LA is probably pushing for a new rent and a new contract as that = £££££££ for them. Your LL may not even know or be bothered about either.

G_M

Severel options:

1) wait for the new contract, see if it is 6 or 12 months or whatever, decide if you want to commit to that period at the new rent, and sign
2) as above but - ring LL and/or agent and say you want 6 months instead of 12 (or 12 instead of 6?), negotiate and sign
3) as above but - ring LL and/or agent and say you want to stay, but think the rent is too much. quote some examples of rents for similar local properties (after having done research of course!), negotiate to stay at same rent as now, or somewhere in between, and sign
4) ring LL/agent (preferably LL) and say you do not want to commit and prefer a Periodic Tenancy. Ignore contract when it comes
5) do nothing. Say nothing. Sign nothing. Stay. You will automatically move to a Periodic Tenancy at same rent as now

Yes, LL has to give you a S21 Notice (2 months). Note that he may already have done so - some LL/agents do this automatically early in the tenancy. If so, check it was valid (see below)

More info here.

Note: you MUST have an address for the LL though it may be c/o the agent. (Landlord and Tenant Act 1987 )

DragonQ

marliepanda wrote: »

I would still write to them c/o the LA. You will have the address for it in your tenancy agreement.

Assuming you are a good tenant the LL would be mad to kick you out for a rent increase etc. The LA is probably pushing for a new rent and a new contract as that = £££££££ for them. Your LL may not even know or be bothered about either.

Sorry for being thick but what does "c/o" mean?

G_M wrote: »

Yes, LL has to give you a S21 Notice (2 months). Note that he may already have done so - some LL/agents do this automatically early in the tenancy. If so, check it was valid (see below)

More info here.

Thanks for the link. We haven't had a Section 21 notice...at least there isn't one amongst our rent documents folder. If the letting agent has it then they haven't told us.

It might be worth noting that the letting agent actually "manages" the property on the landlord's behalf. We have to tell the letting agent, rather than the landlord, if we have any problems. This might mean that the landlord doesn't want us on a rolling contract because then technically the letting agent wouldn't have any more involvement and we'd have to go to him directly, right?

marliepanda

DragonQ wrote: »

Sorry for being thick but what does "c/o" mean?


Thanks for the link. We haven't had a Section 21 notice...at least there isn't one amongst our rent documents folder. If Leaders has it then they haven't told us.

It might be worth noting that Leaders actually "manages" the property on the landlord's behalf. We have to tell Leaders, rather than the landlord, if we have any problems. This might mean that the landlord doesn't want us on a rolling contract because then technically Leaders wouldn't have any more involvement and we'd have to go to him directly, right?

Care of, sorry. basically you write to the LL via the LA.

And everything would stay exactly the same if you went onto rolling. Leaders would still manage, theyd still get their cut etc. You would still go through them, just they wouldnt get a 'new contract' fee or whatever else they might want to charge you/the LL. In that respect nothing changes.

G_M

DragonQ wrote: »

Sorry for being thick but what does "c/o" mean?


Thanks for the link. We haven't had a Section 21 notice...at least there isn't one amongst our rent documents folder. If Leaders has it then they haven't told us.

It might be worth noting that Leaders actually "manages" the property on the landlord's behalf. We have to tell Leaders, rather than the landlord, if we have any problems. This might mean that the landlord doesn't want us on a rolling contract because then technically Leaders wouldn't have any more involvement and we'd have to go to him directly, right?

c/o - 'care of'. ie letters to the LL go via the agent's address.

No - whether your tenancy is 12 months, 6 months Periodic or any other type, does not affect the landlord/agent arrangement. If the LL is paying the agent to manage the property, that contract continues whatever the tenancy type.

If you have not received a S21 yet, then you cannot be made to leave until:
1) you receive one AND
2) 2 months pass AND
3) the LL goes to court and gets a possession order

DragonQ

Cool. Thanks for the advice guys, I think we'll do this:

1) Wait for the renewal agreement.
2) If it's unacceptable (very likely unless they change their minds regarding the price), we'll write to the landlord explaining that we're not prepared to sign and would rather continue on a Statutory Periodic Tenancy at the current price.

In the letter we'll include our intentions to stay for another 2 years (when our PhDs finish) and that we've been good tenants etc. If he agrees, then we're sorted. If not, we'll be given at least 2 months to find somewhere else.

agrinnall

I'd start looking for somewhere else now, if the LL wants to up the rent by 11% then it's pretty unlikely he'll settle for you paying the same and will seek to evict you. If you like the property then it may be a better option to open negociations on the rent with the LL (direct, not through the LA). Unless the rent is currently low for the area and type of property then 11% seems excessive, something around 5% might be more reasonable.

DragonQ

Oh we're prepared to pay a more reasonable increase, just not the proposed 11% one. I would expect a better offer from him in reply to our letter but we'll see. Maybe he'll say "new contract or nothing", in which case we're off.

With regard to prices, having a quick look on a property site shows similar places in the area are £900-1100 (a couple are £1150-£1200 but much nearer to the town centre and station). We're smack in the middle of that right now (£1000).